Best Twitter threads of the day – October 7th

Excited to share @coinbase’s public support and contributions to EIP-4844, an upcoming improvement to the Ethereum protocol that will scale layer 2 rollups by increasing transaction throughput and decreasing fees 10-100x.https://t.co/rmAdjEWrTz

— Coinbase Assets (@CoinbaseAssets) October 6, 2022

Today, transaction fees for using Ethereum are still too high. We want to bring our over 100 million existing customers and the rest of the world into the cryptoeconomy, and in order to do that, we must make it cheap and easy for users to use crypto at scale.

— Coinbase Assets (@CoinbaseAssets) October 6, 2022

EIP-4844 lowers fees by introducing a new transaction type to Ethereum that accepts ephemeral “blobs” of data, which are purpose built for storing rollup data. With this change in place, we expect gas fees on layer 2 rollups to decrease by 10-100x

— Coinbase Assets (@CoinbaseAssets) October 6, 2022

In May of this year, we got together with @OPLabs and @Ethereum and began collaborating to specify, implement, and test EIP-4844. We’re dedicating significant engineering resources to the effort and thanks to the teams’ collective effort, we’ve made a huge amount of progress.

— Coinbase Assets (@CoinbaseAssets) October 6, 2022

We now have a full specification for the execution and consensus clients, working implementations in the Prysm and Geth clients, nearly complete preparations for the KZG ceremony, and a launched Devnet v1. And we’re excited to launch Devnet v2 in time for Devcon next week!

— Coinbase Assets (@CoinbaseAssets) October 6, 2022

Given how important reducing transaction fees and increasing throughput is to bring the next billion users into the cryptoeconomy, we believe that the sooner EIP-4844 can safely be deployed to mainnet, the better.

— Coinbase Assets (@CoinbaseAssets) October 6, 2022

Whether you’re a rollup, an exchange, or just an interested individual, if you’re interested in supporting the effort, you can learn more and get involved at https://t.co/Zz47228Wse.

— Coinbase Assets (@CoinbaseAssets) October 6, 2022

1/ I collected data on over $4B of crypto application hacks

In this piece, I break down how the hacks were executed, the tools we have to stop history from repeating itself, and predictions for the future of crypto securityhttps://t.co/W2A9lPz69O

— Kofi (@0xKofi) October 6, 2022

2/ Here's a sneak peek 👇

The crypto app ecosystem is made up of
– interoperable protocols
– powered by smart contracts
– that rely on the underlying infrastructure of the host chain and the internet

We can classify crypto app hacks by the layer of the stack that was exploited pic.twitter.com/FzxvYq859V

— Kofi (@0xKofi) October 6, 2022

3/ Ecosystem attacks that take advantage of the interaction between multiple applications occur the most often.

They represent 41% of the sample group. pic.twitter.com/6XVfWFvq2S

— Kofi (@0xKofi) October 6, 2022

4/ The most common type of ecosystem attack is the flashloan price oracle attack

Hackers use flashloan funds to move a token's price with big DEX swaps. Then they can profit by taking loans backed by the price of the pumped token, shorting a token they crashed etc. pic.twitter.com/HpMhI8abx1

— Kofi (@0xKofi) October 6, 2022

5/ Infrastructure attacks have resulted in the most money lost. Hackers target infra like private key storage systems and internet services used for the frontend.

This is heavily skewed by the Ronin bridge attack, the biggest hit in the dataset. pic.twitter.com/GKlLaAYK02

— Kofi (@0xKofi) October 6, 2022

6/ For more data-driven insights into how the biggest crypto hacks are executed and how we can stop them, read the full article. https://t.co/W2A9lPz69O

— Kofi (@0xKofi) October 6, 2022

7/ If you agree that the state of crypto security is embarrassing and in need of serious improvement, retweet the first tweet to help share this research ⚡https://t.co/DoAS0n3ihn

— Kofi (@0xKofi) October 6, 2022

1/ For many current DeFi protocols, liquidity or the amount of funds available is one of the chief constraints.

Stables, in particular, are a universal constraint across various ecosystems.

Can understanding stablecoin levels in an ecosystem allow users to forecast risk? 🧵 pic.twitter.com/dpwxML9qmt

— Messari (@MessariCrypto) October 6, 2022

2/ Total Value Locked (TVL) on a chain comprises both market-priced tokens like #Ethereum and stablecoins.

Taking the ratio of TVL over the total on-chain stablecoin supply is a rough estimate of how much of the TVL is composed of price volatile assets versus stablecoins. pic.twitter.com/xZNo2KDIwh

— Messari (@MessariCrypto) October 6, 2022

3/ It appears there is a relationship between stablecoin supply and how much the ecosystem can grow before market crashes.

When TVL is to a greater extent composed of market priced assets compared to stables, the entire ecosystem appears to be unstable.

— Messari (@MessariCrypto) October 6, 2022

4/ Instability can also be seen in pools.

Instability can be defined as a deviation from the optimal 50% token share of the pool.

The further the deviance from the optimal point, the more slippage and potential price volatility in the market. pic.twitter.com/TOWoh0aWYo

— Messari (@MessariCrypto) October 6, 2022

5/ Unlike TVL/Supply, there are neither clear boundary conditions on any chains nor an apparent level for stablecoin supply per user at the major market drawdown dates.

Instead, the data alludes to a different user persona on each chain. pic.twitter.com/UVmPwvYdnN

— Messari (@MessariCrypto) October 6, 2022